IRS Debt

Tax Act

It is certainly possible for someone who is in debt to the Internal Revenue Service, to make a deal that allows them to satisfy the debt at a figure that is lower than the original figure that is due. This is certainly to the advantage of the individual who owes the debt, but quite frankly, the IRS is interested in making this possible because it does work to their advantage in certain ways also. From their viewpoint, they are collecting at least some of the money due them, they are cutting down enormously on the time and effort involved in attempting to collect this money, and they avoiding the possibility of getting nothing in return for all their work.

One of the first things that the debtor might consider, is to try and arrange a compromised figure with the IRS. If a person can legitimately show them that repayment of the actual amount due is going to be an impossibility, but one wishes to make a sincere effort to resolve the situation based on a realistic appraisal of how much they can afford to pay, in some cases they will be open to settling things in this manner. Certainly, the person attempting this method of handling matters must have extensive backup information available to support and document their case, and this information must be current, accurate and verifiable.

Another option that some may try to work out with the agency is what might be called a partial payment agreement. Basically what this is, is an installment repayment plan that is set up at an agreed upon number that will be lower than the number would be in a standard installment agreement. Again, the debtor must document and prove to the agency that this number is what they can pay and efforts to try and meet any higher figure would prove to be impossible and fruitless. Once again, they will have to be able to verify their status showing why this should be the case.

Still another potential avenue one might pursue is to try and reach an agreement with the IRS to repay the original amount of money that was due, but have the totals of all fines and penalties that have accrued and been added onto that original number forgiven and eliminated. Very often, the agency is very agreeable to doing this so that they will at least recover the initial amount that was due.

Something else that is extremely important for the debtor to seriously consider is to locate and consult with an experienced tax attorney or accountant who specializes in handling these types of matters. That seasoned professional can be the greatest asset because they are familiar with the ins and outs of the procedure, usually have personal contacts to deal with at the agency, and can provide the correct direction to proceed that will be most beneficial to the debtor. Sometimes, folks are reluctant to take on an additional expense, but in this case any money that might be laid out will in the long run be providing big savings.

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